VARIOUS TAXPAYER SITUATIONS RELATING TO INCOME AND DEDUCTIONS FOR INCOME PRODUCING ITEMS (1) Taxpayer Jones has the following amounts relating to a hobby. Income Mortgage interest and property taxes allocable to hobby Depreciation Supplies and fees Telephone for hobby $ 23,000 12,000 4,000 7,000 3,000 Calculate the net income or loss that Jones should include as taxable income for this hobby. Show appropriate supporting calculations. (2) During the year, Rita rented her vacation home for twelve days for $2,400. She used it personally for three months and incurred the following expenses on the home. Property taxes Mortgage interest Depreciation Utilities and maintenance Insurance 2,200 10,800 5,000 1,900 900 Calculate her rental gain or loss and her itemized deductions (deductions from AGI).